Question

What types of stock can a corporation issue? Select one: a. Preferred stock can be issued,...

What types of stock can a corporation issue? Select one: a. Preferred stock can be issued, but not common stock. b. Common stock can be issued, but not preferred stock. c. Both common stock and preferred stock can be issued. d. Neither common stock nor preferred stock can be issued.

Homework Answers

Answer #1

Option (c) is correct. A corporation can issue both types of stock,common stock and preferred stock.Both stocks create equity in the company for stockholders.Common stock is the baiscownership interest in a corporation.Common shareholders bear the ultimate risk of loss and receive the ultimate benefits of success. Preferred stock is an equity security with preferences and features not availabe to common stock. Prefereed stock include a preference relating to dividend payment,payment on liquidation.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Concord Corporation is authorized to issue both preferred and common stock. The par value of the...
Concord Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued 52,500 shares for cash at $53 per share. July 1 Issued 70,000 shares for cash at $59 per share. Journalize the transactions. Post to the stockholders’ equity accounts. (Use T-accounts.)
Compared with common stock, preferred stock values Select one: a. are less variable. b. are more...
Compared with common stock, preferred stock values Select one: a. are less variable. b. are more variable. c. are higher. d. are lower.
Sheffield Corporation is authorized to issue 23,000 shares of $50 par value, 10% preferred stock and...
Sheffield Corporation is authorized to issue 23,000 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value common stock. On January 1, 2020, the ledger contained the following stockholders’ equity balances. Preferred Stock (11,500 shares) $575,000 Paid-in Capital in Excess of Par—Preferred Stock 67,000 Common Stock (62,000 shares) 310,000 Paid-in Capital in Excess of Par—Common Stock 650,000 Retained Earnings 280,000 During 2020, the following transactions occurred. Feb. 1 Issued 2,000 shares of preferred stock for...
Consider the following capital structure for AAA Corporation. The company has one debt issue, preferred stock...
Consider the following capital structure for AAA Corporation. The company has one debt issue, preferred stock and common stock in its capital structure. The firm’s tax rate is 40%; the risk-free rate is 3%. Details on the components of the capital structure are listed below. Bond issue: Preferred equity: Common equity: Coupon-paying issue $100 million par 10% semiannual coupon Remaining maturity of 15 years Currently priced in market at 90% of par value Coupon-paying issue $50 million par 6% annual...
XYZ Corporation is authorized to issue 100,000 shares $ 3 stated value common stock and 50,000...
XYZ Corporation is authorized to issue 100,000 shares $ 3 stated value common stock and 50,000 shares of $ 5 par value preferred stock. XYZ Corporation issued 10,000 shares common stock for $ 50,000.00. cash. XYZ Corporation issued 5,000 shares preferred stock for $ 55,000.00 cash. XYZ Corporation issued 5000 shares of common stock to its attorneys in payment of $ 25,000 legal fees in helping to organize the corporation. XYZ Corporation issued 15,000 shares of common stock for land,...
Sarasota Corp. is authorized to issue both preferred and common stock. The par value of the...
Sarasota Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $ 50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued  50,800 shares for cash at $ 128 per share. July 1 Issued  150,600 shares for cash at $ 71 per share. a. Journalize the transactions. b. Post to the stockholders’ equity accounts. (Use T-accounts.)
Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for...
Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $74,000 cash. Instructions Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock.) (b) Give the entry for...
Lumpsum sale of common stock with preferred stock FINCO Corporation issued 600 shares of $10 par...
Lumpsum sale of common stock with preferred stock FINCO Corporation issued 600 shares of $10 par value common stock and 200 shares of $50 par value preferred stock for a lump sum of $27,000. Common stock has a market value of $20 per share, and preferred stock has a market value of $90 per share. Required: (a) Proportional method - Calculate the FMV of the common stocks and the preferred stocks and record the journal entry to record the sale....
A corporation has the following: 6% Preferred Stock, $50 par, 500,000 shares authorized, 100,000 issued and...
A corporation has the following: 6% Preferred Stock, $50 par, 500,000 shares authorized, 100,000 issued and outstanding Common Stock, $2 par, 8,000,000 shares authorized,   5,000,000 issued and outstanding The company paid $750,000 of dividends in 2019.  Calculate the amounts paid to the preferred and common shareholders. Determine the amount paid to each class of stock listed above if the preferred stock is cumulative and no dividends were paid in 2017 or 2018 What is the dollar impact an any potential 2020...
Blue Corporation has 100 shares of common stock issued, of which 50 shares are owned by...
Blue Corporation has 100 shares of common stock issued, of which 50 shares are owned by Carmine Blue, and 50 shares are owned by his wife, Violet Blue. Blue Corporation distributes to each of them 50 shares of a newly-created issue of preferred stock. The preferred shares distributed have an aggregate value of $100,000, and the remaining value of the corporation (that is, the aggregate value of the common stock outstanding) is $100,000. The newly-issued preferred shares are convertible, and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT